Relaxing whilst doing Competition Law is not an Oxymoron

Archive for September 11th, 2013

Convergence Rule – A Spanish Example

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The convergence rule of Regulation 1/2003 (Article 3(2) sets that:

The application of national competition law may not lead to the prohibition of agreements, decisions by associations of undertakings or concerted practices which may affect trade between Member States but which do not restrict competition within the meaning of Article 81(1) of the Treaty, or which fulfil the conditions of Article 81(3) of the Treaty or which are covered by a Regulation for the application of Article 81(3) of the Treaty“.

Often, I have struggled to find concrete examples of such situations.

Our friend Miguel Troncoso Ferrer (Gomez Acebo Pombo) has offered us a very good illustration of this.

A recent amendment to the Spanish Hydrocarbons Act sets out a blanket prohibition of non-binding price recommendations in distribution agreements in the hydrocarbons industry.

This prohibition covers agreements below the 30% market share threshold.

It thus prohibits conduct which is covered by “a Regulation for the application of Article 81(3) of the Treaty“.

And this amendment purports to regulate competition (according to the Preamble of the new statute).

It thus violates EU law. The full analysis is available here: Analysis_On the compatibility with Eu Law of the new Section 43 A

In light of the Italian Matches case-law, publics authorities, national courts and firms can disregard this legislative provision.

@Alfonso: an apology. I did not mean to promote of a rival shop.

Written by Nicolas Petit

11 September 2013 at 5:45 pm

Posted in Uncategorized